In preparation for the launch of Making Tax Digital (MTD) for VAT, HMRC has opened up the pilot trials to include more businesses to test the new VAT submission methods.
The pilot was previously open to the following types of VAT registrations:
- Sole traders and companies up to date with their VAT (cannot be part of a VAT group or VAT division)
- Sole traders and companies with a default surcharge within the last 24 month (were able to join from the end of October 2018).
HMRC has now widened the trial to the following types of VAT registrations:
- Sole traders and companies who are not up to date with their VAT (cannot be part of a VAT group or VAT division)
- Users of the Flat Rate Scheme
- Newly VAT registered businesses that are yet to submit their first VAT return
- Businesses that trade with the EU.
If you pay your VAT by Direct Debit you will not be able to sign up for the pilot in the 15 days leading up to your submission date.
Joining the pilot now means you can proactively identify any potential issues with your accounting system, have a go at using the new submission methods to HMRC, and also train relevant staff well ahead of the mandatory MTD date. The date that the new MTD system will go live depends on your type of business and it will either be 1 April or 1 October 2019.
If you wish to take part in the trial, you will need to consider the following points:
- Check whether your current accounting software is MTD ready and compliant. HMRC has a list of approved software suppliers here.
- If your current software isn’t on this list, you will need to consider whether to change accounting software or use a bridging solution in order to file your VAT return.
- Please note that once you sign up to take part in the trial you will no longer be able to submit the VAT return using the current filing methods, so it is important to ensure the software you use is right for your business and compliance requirements.
How to sign up to the pilot
You can sign up to the pilot from the ‘Dealing with HMRC’ webpage on the Government website. Remember that you’ll need to have your Government Gateway user ID and password and also your VAT registration number.
To continue the conversation, please get in touch with:
Partner - VAT
t: +44 (0)20 7156 2262
Partner - Outsourcing
t: +44 (0)20 7516 2368